Apple Reports Fourth Quarter Results

iPhone Sales Grow 26% to Establish New September Quarter Record

October 28, 2013 04:30 PM Eastern Daylight Time

CUPERTINO, Calif.--(BUSINESS WIRE)--Apple® today announced financial results for its fiscal 2013 fourth
quarter ended September 28, 2013. The Company posted quarterly revenue
of $37.5 billion and quarterly net profit of $7.5 billion, or $8.26 per
diluted share. These results compare to revenue of $36 billion and net
profit of $8.2 billion, or $8.67 per diluted share, in the year-ago
quarter. Gross margin was 37 percent compared to 40 percent in the
year-ago quarter. International sales accounted for 60 percent of the
quarter’s revenue.

The Company sold 33.8 million iPhones, a record for the September
quarter, compared to 26.9 million in the year-ago quarter. Apple also
sold 14.1 million iPads during the quarter, compared to 14 million in
the year-ago quarter. The Company sold 4.6 million Macs, compared to 4.9
million in the year-ago quarter.

Apple’s Board of Directors has declared a cash dividend of $3.05 per
share of the Company’s common stock. The dividend is payable on November
14, 2013, to shareholders of record as of the close of business on
November 11, 2013.

“We’re pleased to report a strong finish to an amazing year with record
fourth quarter revenue, including sales of almost 34 million iPhones,”
said Tim Cook, Apple’s CEO. "We’re excited to go into the holidays with
our new iPhone 5c and iPhone 5s, iOS 7, the new iPad mini with Retina
Display and the incredibly thin and light iPad Air, new MacBook Pros,
the radical new Mac Pro, OS X Mavericks and the next generation iWork
and iLife apps for OS X and iOS.”

“We generated $9.9 billion in cash flow from operations and returned an
additional $7.8 billion in cash to shareholders through dividends and
share repurchases during the September quarter, bringing cumulative
payments under our capital return program to $36 billion,” said Peter
Oppenheimer, Apple’s CFO.

Apple is providing the following guidance for its fiscal 2014 first
quarter:

• revenue between $55 billion and $58 billion

• gross margin between 36.5 percent and 37.5 percent

• operating expenses between $4.4 billion and $4.5 billion

• other income/(expense) of $200 million

• tax rate of 26.25 percent

Apple will provide live streaming of its Q4 2013 financial results
conference call beginning at 2:00 p.m. PDT on October 28, 2013 at www.apple.com/quicktime/qtv/earningsq413.
This webcast will also be available for replay for approximately two
weeks thereafter.

This press release contains forward-looking statements including without
limitation those about the Company’s estimated revenue, gross margin,
operating expenses, other income/(expense), and tax rate. These
statements involve risks and uncertainties, and actual results may
differ. Risks and uncertainties include without limitation the effect of
competitive and economic factors, and the Company’s reaction to those
factors, on consumer and business buying decisions with respect to the
Company’s products; continued competitive pressures in the marketplace;
the ability of the Company to deliver to the marketplace and stimulate
customer demand for new programs, products, and technological
innovations on a timely basis; the effect that product introductions and
transitions, changes in product pricing or mix, and/or increases in
component costs could have on the Company’s gross margin; the inventory
risk associated with the Company’s need to order or commit to order
product components in advance of customer orders; the continued
availability on acceptable terms, or at all, of certain components and
services essential to the Company’s business currently obtained by the
Company from sole or limited sources; the effect that the Company’s
dependency on manufacturing and logistics services provided by third
parties may have on the quality, quantity or cost of products
manufactured or services rendered; risks associated with the Company’s
international operations; the Company’s reliance on third-party
intellectual property and digital content; the potential impact of a
finding that the Company has infringed on the intellectual property
rights of others; the Company’s dependency on the performance of
distributors, carriers and other resellers of the Company’s products;
the effect that product and service quality problems could have on the
Company’s sales and operating profits; the continued service and
availability of key executives and employees; war, terrorism, public
health issues, natural disasters, and other circumstances that could
disrupt supply, delivery, or demand of products; and unfavorable results
of other legal proceedings. More information on potential factors that
could affect the Company’s financial results is included from time to
time in the “Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” sections of the Company’s
public reports filed with the SEC, including the Company’s Form 10-K for
the fiscal year ended September 29, 2012, its Form 10-Q for the quarter
ended December 29, 2012, its Form 10-Q for the quarter ended March 30,
2013, its Form 10-Q for the quarter ended June 29, 2013, and its Form
10-K for the year ended September 28, 2013 to be filed with the SEC. The
Company assumes no obligation to update any forward-looking statements
or information, which speak as of their respective dates.

Apple designs Macs, the best personal computers in the world, along with
OS X, iLife, iWork and professional software. Apple leads the digital
music revolution with its iPods and iTunes online store. Apple has
reinvented the mobile phone with its revolutionary iPhone and App Store,
and is defining the future of mobile media and computing devices with
iPad.